The Kalshi logo was placed on a laptop in New York, USA on Monday, February 10th, 2025.
Gabby Jones | Bloomberg | Getty Images
Massachusetts filed a lawsuit against Calci in state court on Friday, alleging that the forecasting platform offers unlicensed sports gambling under the guise of an event agreement.
“If Calci wants to participate in the Massachusetts sports gaming business, they must obtain a license and follow our laws,” Massachusetts Attorney General Andrea Joy Campbell said in a news release.
The state is also asking the court to prevent Calci from offering a sporting event contract in Massachusetts while the lawsuit is pending.
Event contracts are regulated as forecast markets by the Commodity Futures Trading Commission. Karshi has repeatedly argued in federal court that the CFTC’s status as a federal agency will replace state regulators.
In a summary filed in Suffolk County Superior Court, Massachusetts argues that Calci makes more money on sports betting than legally licensed sportsbooks.
“Sports event betting consisted of approximately 70% of Calci’s trading volume from February 25th to May 17th, 2025, and has increased to 75% since March 18th, 2025. “Calsi made more from sports betting than licensed sports betting platforms. DraftKings or Fan Duell During the same time slot from February to May. ”
Screenshots of the Kalshi platform included in a lawsuit by Massachusetts against the forecasting platform.
A Calci spokesperson told CNBC this week that $439 million worth of wagers had been featured on the NFL contract so far.
The company is at the forefront of national defense in sports forecast trading. This week, the company held an oral discussion before the Court of Appeals for the Third Circuit on an appeal by New Jersey.
